News Flash, Feb. 24: NevGold announced Wednesday that it will advance its 100%-owned Ptarmigan Project in British Columbia to an active field program including drilling starting second quarter of 2022.
NevGold recently completed historical data compilation and interpretation on the site and has identified possible extensions spanning over 4 kilometers to the known high-grade parallel vein structures. Historical drilling intercepted grades up to 22,945 g/t Ag, 37 g/t Au, 8.24% Cu, and 3.70% Pb, the company said.
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NevGold Corp. (NAU:TSX; NAUFF:OTC; 5E50:FSE), a Vancouver-based exploration and development company, has reported that initial drill assays from its inaugural 10,000 meter drill program at its Limousine Butte Project in Nevada indicate extremely positive results in connection with the near-surface, high-grade oxide gold nature of mineralization at the project.
The results received include 2.19 g/t oxide Au (grams of gold oxide per ton) over 61.6 meters including 8.51 g/t oxide Au over 11.6 meters, and 1.30 g/t oxide Au over 44.4 meters including 3.11 g/t oxide Au over 11.1 meters.
In January, the company announced that it added a second drill rig at Limousine Butte to expedite the drill program at both the Resurrection Ridge and Cadillac Valley target areas. Both of these areas are currently being drilled, and the company plans to release drill results over the next two to three months generating steady news flow.
“The positive results of the assays indicate thick intercepts of near-surface multi-gram oxide gold material, which is a key indicator of a strongly mineralized system and the making of an economical orebody in the best mining jurisdiction of the world of Nevada.” said Brandon Bonifacio, NevGold’s president, chief executive officer, and director.
“This is a positive step forward in our plans to advance to a resource estimation at some point in Q2 or Q3 of this year,” Bonifacio told Streetwise. “After we complete the resource estimation, we will progress to the engineering stage to determine the economic feasibility of gold extraction. The final steps are the permitting and construction phases to start extracting gold. This is one crucial step in advancing and de-risking the project on the path to gold production.”
Based on historic industry patterns, Bonifacio said that the reporting of positive assays often marks a positive inflection point in an exploration company’s share value as investors begin to get a clearer picture of how much gold will be available to be mined.
“If all things continue as they are going, we’re about 12 to 24 months away from delivering a positive, economic Prefeasibility Study showing a highly economical orebody, with simple mining and low costs as the gold is right at the surface,” Bonifacio said.
“What’s more, the fact that the site is in Nevada comes with many benefits. The state has been rated the best jurisdiction in the world for mining because of its mining-friendly regulation, abundant infrastructure including power and water, skilled labor, and easy site access through state-paved highways. There is a reason Nevada produces around 80% of the gold in the United States, and 5% of the global total on a yearly basis,” Bonifacio explained.
NevGold ‘Sitting On a Pot of Gold’
Equedia Research, a Vancouver-based business information service, recently called NevGold “a stock that ticks a lot of boxes to become a winner in this coming gold run-up.”
As Equedia explained in a posting on Feb. 5, “Investors often use a metric called EV/oz to value junior miners. The metric takes the enterprise value of the company and divides it by the total resources of gold in the ground. NevGold is trading at an approximate CA$20 million market cap today. Peer companies with gold resources in Nevada trade at CA$69/oz in the ground. If NevGold drives to the 1 million ounce mark, that should drive the company to a valuation close to CA$70 million, which is more than 3.5 times where it is trading today.”
Equedia concluded that “there’s a good chance NevGold is sitting on a pot of gold in one of the most underexplored mining areas of Nevada.”
Why Gold Is a ‘Safe Haven’ in Early 2022
Rising inflation, rising interest rates, and the unprecedented level of global debt are the key factors that support a rise in the price of gold.
“The main driver is inflation, which is at the highest level in the U.S. since the 1970s and can no longer be seen as transitory,” said Bonifacio.
“The rising interest rates that the Federal Reserve says are coming will also build the case for gold. It’s noteworthy that the last three bull runs in gold came at a time when central banks started raising rates, as they are about to do now,” he explained.
At times in the past when political conditions as well as economic conditions were unsettled, as they are now, many people turned to gold as a safe-haven asset and store of wealth as it is very difficult to trust the policies and decisions of governments, Bonifacio added.
At the time of writing, Nevgold’s market cap is at $24.8 million, with 49,634,552 shares outstanding, and has traded between $.43 and $.58 over the last 30 days.
Disclosures
1) Evan Cooper compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He and members of his household are paid by the following companies mentioned in this article: None. His company has a financial relationship with the following companies referred to in this article: None.
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